【Economic Calendar】
The State Council Information Office held a press conference on the situation of increasing assistance to enterprises;
The State Council Information Office held a press conference on the import and export situation in the first three quarters of 2024;
Tmall and JD.com will open the 2024 "Double 11" at 20 o'clock.
U.S. stocks closed higher across the board on Friday, with the Dow hitting a new high and the S&P 500 closing above 5,800 for the first time. At the close, the Dow rose 409.74 points, or 0.97%, to close at 42,863.86, the Nasdaq rose 60.89 points, or 0.33%, to close at 18,342.94, and the S&P 500 added 34.98 points, or 0.61%, to close at 5,815.03.
The three major stock indexes rose for the fifth week in a row. Last week, the Dow rose 1.2%, while the Nasdaq and S&P 500 each rose 1.1%.
The technology sector is higher, up about 2.6% for the week, leading the S&P 500. Among them, the shares of Super Micro Computer and Palo Alto Networks rose more than 15% and 9% respectively for the week. Industrials and financials were the second largest gainers.
In terms of Chinese concept stocks, the Nasdaq China Golden Dragon Index closed up 0.91%. iQiyi rose 3.91%, Xunlei rose 2.54%, Pinduoduo rose 2.25%, Xpeng Motors rose 1.90%, Zhihu rose 1.55%, JD.com rose 1.41%, Alibaba rose 0.79%, and NIO rose 0.32%.
►►On October 12, the State Council Information Office held a press conference on "increasing the counter-cyclical adjustment of fiscal policy and promoting high-quality economic development":
►Minister of Finance Lan Fo'an:
- It is proposed to increase the debt limit of a larger scale at one time, replace the existing implicit debt of local governments, and increase efforts to support local governments to resolve debt risks;
- It is planned to launch a number of reform measures that are ripe and feasible this year and next;
- Superimposed the use of local government special bonds, special funds, tax policies and other tools to support and promote the real estate market to stop falling and stabilize;
- Issuing special treasury bonds to support large state-owned commercial banks in replenishing their core Tier 1 capital;
- There are other policy tools for countercyclical adjustment that are being studied, such as the central government, which still has more room for borrowing and deficit improvement;
- China's fiscal resilience is sufficient, and through comprehensive measures, it can achieve a balance between revenue and expenditure and meet this year's budget targets;
- Encourage qualified localities to revitalize idle assets and strengthen the management of state-owned capital gains;
- Make good use of special funds, loan interest discounts and other tools to drive effective investment;
-The use of additional government bonds is being accelerated, and the use of ultra-long-term special government bonds is also being issued one after another. In the next three months, a total of 2.3 trillion yuan of special bond funds can be arranged;
►Vice Minister of Finance Liao Min:
- Make good use of special bonds to purchase the stock of commercial housing for use as affordable housing in various places;
- Support local governments to use special bonds to reclaim eligible idle land and enhance their ability to regulate and control land supply;
- We are stepping up research on clarifying the value-added tax and land value-added tax policies that are in line with the abolition of the standards for ordinary and non-ordinary residences;
- The capital replenishment of major state-owned banks has been started, and the banks are waiting for their capital replenishment plans to be submitted;
►Vice Minister of Finance Wang Dongwei:
- Increase support for special bonds for major economic provinces, and allocate quotas to areas with adequate project preparation and high investment efficiency, so as to support the construction of major projects in major economic provinces;
- The next step will be to expand the scope of use of special bonds, maintain the intensity and pace of government investment, and reasonably reduce financing costs;
►►Data released by the National Bureau of Statistics:
►In September 2024, the ex-factory prices of industrial producers nationwide fell by 2.8% year-on-year and 0.6% month-on-month; The purchasing prices of industrial producers fell by 2.2 percent year-on-year and 0.8 percent month-on-month. From January to September, the ex-factory prices of industrial producers decreased by 2.0 percent over the same period of the previous year, and the purchase prices of industrial producers decreased by 2.1 percent.
►In September 2024, the national consumer price rose by 0.4% year-on-year. Among them, the urban area increased by 0.4%, and the rural area increased by 0.6%; Food prices rose by 3.3% and non-food prices decreased by 0.2%; Consumer goods prices rose by 0.5 per cent and services by 0.2 per cent. From January to September, the national consumer price rose by 0.3 percent over the same period of last year.
►►On October 12, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and other banks successively issued announcements that from October 25, the interest rates of existing personal housing loans will be adjusted in batches. Except for the case where the loan is in Beijing, Shanghai, Shenzhen and other regions and is a second home loan, the interest rate of other eligible housing loans will be adjusted to the loan market prime rate LPR-30BP.
►►On October 13, Zhang Qijun, a first-level inspector of the Inclusive Finance Department of the State Administration of Financial Regulation, said that we are taking the lead in drafting local financial supervision and management regulations, and actively soliciting opinions from relevant departments to promote the introduction of higher-level laws as soon as possible. Zhang Qijun said that at the same time, combined with the characteristics and development laws of the leasing industry, optimize and improve the regulatory supporting policies, and further promote the standardized and orderly development of financial leasing companies.
►►He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, was in Taiyuan, Shanxi Province, and Xi'an, Shaanxi Province from October 10 to 12 to investigate real estate, trade-in of bulk durable consumer goods and foreign trade. He Lifeng pointed out that the real estate market is a vane of the current macroeconomy, and doing a good job in real estate is very important to promote the sustained economic rebound and safeguard the vital interests of the people. Financial institutions should further optimize the credit approval and lending process, improve efficiency, and earnestly ensure that the "white list" of projects should be fully advanced and loans should be fully loaned. On this basis, we will further promote the expansion of the "white list", include all eligible commercial housing projects under construction and sold into the scope of support, effectively guarantee the capital needs of project construction, and urge real estate enterprises to ensure that they deliver houses on time and with good quality. At the same time, it is necessary to actively promote the acquisition of stock commercial housing for affordable housing, in-depth analysis of typical cases, timely summary and promotion of successful practices, make good use of support policies such as refinancing of affordable housing, and promote the acceleration of the digestion of commercial housing inventory.
►►On October 12, the People's Bank of China, the Ministry of Ecology and Environment, the State Administration of Financial Supervision and the China Securities Regulatory Commission jointly issued the Opinions on Giving Play to the Role of Green Finance and Serving the Construction of a Beautiful China. Among them, it is proposed to focus on improving the green financial service capabilities of financial institutions and enriching green financial products and services. Financial institutions such as banks, insurance, securities, and funds should improve the quality of green finance supply by improving their working mechanisms, optimizing process management, promoting the application of financial technology, and strengthening team building.
►►On October 12, the spokesperson of the Ministry of Commerce answered reporters' questions on the Sino-EU negotiations on the EU anti-subsidy case for electric vehicles. The Ministry of Commerce said that China's attitude and sincerity in seeking a solution through dialogue and consultation have not changed, and it has formally invited the European side to send a technical team to China as soon as possible to continue the next stage of face-to-face consultations, and has made all preparations for this. It is hoped that the EU side will work with China in the same direction, arrange a visit to China as soon as possible, and accelerate consultations in a constructive manner, so as to reach an appropriate solution at an early date.
►►The General Office of the State Council forwarded the Opinions on Strengthening Supervision, Preventing Risks, and Promoting the High-quality Development of the Futures Market issued by the China Securities Regulatory Commission and other departments. Among them, it is proposed to develop the financial futures and derivatives markets steadily and prudently, and give full play to the dual functions of stock index futures and options to stabilize the market and activate the market; Promote the inclusion of eligible commodity futures and options varieties in the scope of open to the outside world in an orderly manner; Urge banking institutions to further strengthen credit management, and strictly prevent enterprises from using credit funds to engage in commodity futures speculation in violation of regulations; Strictly supervise futures trading behavior, cancel the reduction of fees for high-frequency trading; Pay close attention to the evolution of new trading technologies and strategies, and do a good job of forward-looking research and regulatory policy reserves.
►►On October 11, the Shanghai Stock Exchange issued the Guidelines for the Application of the Review Rules for Issuance and Listing of the Shanghai Stock Exchange No. 6 - Identification Standards for Asset-light and High R&D Investment (Trial), which came into effect on the date of issuance. There are 12 articles in the Guidelines, which clarify the scope of application, specific identification standards, verification requirements, information disclosure requirements, and regulatory requirements for raising funds for enterprises identified as "asset-light and high R&D investment" enterprises on the Science and Technology Innovation Board.
►►On October 12, the Shanghai Artificial Intelligence Ecological Fund, led by Shanghai State Investment Corporation, was officially released. Yicai learned from Shanghai State Investment Corporation that the scale of the fund is 10 billion yuan, with the first phase of 3 billion yuan, which has landed in Xuhui District and has completed the first pass of 500 million yuan. The fund will focus on the ecology of the large model industry chain, invest in three major subdivisions: AI infrastructure, basic and vertical large models, and next-generation end-side AI applications, guide resource focus, open up the upstream and downstream of the AI industry chain, and promote the exploration of leading applications to form new development opportunities.
►►On October 13, the latest wholesale reference price disclosed by the wine price showed that the price of Feitian Moutai bulk bottles in 2024 was reported at 2,240 yuan per bottle, the same as the previous day; In 2024, the original box of Feitian Moutai will be reported at 2,300 yuan per bottle, down 20 yuan from the previous day.
►►According to data from the China Association of Automobile Manufacturers, in September, vehicle production and sales reached 2.796 million units and 2.809 million units, up 12.2% and 14.5% m/m, respectively, and down 1.9% and 1.7% y/y, respectively. From January to September, vehicle production and sales reached 21.47 million units and 21.571 million units, up 1.9% and 2.4% y/y, respectively, and the growth rate of production and sales narrowed by 0.6 and 0.7 percentage points respectively from January to August.
Guangzhi Technology: It is planned to purchase 100% of the shares of PVD sputtering target company Pioneer Electric Technology Co., Ltd. and resume trading
Guangzhi Technology announced that the company intends to purchase 100% of the shares of Pioneer Electronic Technology Co., Ltd. held by all 55 shareholders of Pioneer Electronic Technology Co., Ltd. by issuing shares and paying cash, and at the same time intends to issue shares to no more than 35 specific investors to raise matching funds. The target company is committed to the R&D, production and sales of advanced PVD sputtering targets and evaporation materials, as well as the recycling, purification, preparation and sales of high-purity dispersed metals and compounds. Trading in the Company's shares will resume from the market open on Monday, October 14, 2024.
Yonghui Supermarket: Received the notice of acceptance of the arbitration case from the Shanghai International Arbitration Center
Yonghui Supermarket announced that the company received a notice of acceptance of the arbitration case from the Shanghai International Arbitration Center on October 12, and the company requested that Dalian Yujin immediately pay the remaining share transfer price of 3.639 billion yuan to the company, as well as 218 million yuan of liquidated damages for accelerated maturity. At the same time, it requested that Dalian Yujin immediately pay the company RMB 2 million in lawyer's fees incurred in connection with the case. It is requested that Wang Jianlin, Sun Xishuang and Dalian Yifang Group Co., Ltd. be jointly and severally liable for the aforesaid remaining share transfer price, liquidated damages for accelerated maturity and attorney's fees totaling RMB3.859 billion. Given that the case has not yet been heard, there is uncertainty about the outcome of the subsequent trial.
CICC: Filed a case by the China Securities Regulatory Commission (CSRC) on suspicion of failing to be diligent in sponsoring the initial public offering of shares
CICC announced that on October 11, 2024, the company received the "Notice of Case Filing" from the China Securities Regulatory Commission, and the CSRC decided to file a case against the company because the company was suspected of failing to be diligent in sponsoring the initial public offering of shares. The company will actively cooperate with the relevant work of the China Securities Regulatory Commission and fulfill its information disclosure obligations in strict accordance with regulatory requirements. At present, the company's business situation is normal.
SMIC: On October 10, E Fund's SSE Science and Technology Innovation Board 50 Component Exchange-traded Open-ended Index Securities Investment Fund increased its holdings of 9,616,200 shares of the company's domestic stocks
SMIC announced that E Fund's SSE Science and Technology Innovation Board 50 Component Exchange-traded Open-ended Index Securities Investment Fund, a subsidiary of E Fund Management Co., Ltd., increased its holdings of 9,616,200 shares of the company's domestic stocks, accounting for 0.48% of the total share capital. The increase will be made on October 10, 2024, and the increase will be made through trading on the stock exchange. After this change, the fund holds 108.7 million shares of SMIC's domestic shares, accounting for 5.47% of the company's total domestic share capital and 1.36% of the company's total share capital. This change has not led to a change in the status of the listed company without a controlling shareholder or actual controller.
2. Guotai Junan: The effective and completion of matters related to the absorption and merger of Haitong Securities are subject to the reconsideration and approval of the boards of directors of both parties
Guotai Junan issued a change announcement, and after the company's self-examination and written confirmation to the controlling shareholder and actual controller, as of the disclosure date of this announcement, in addition to the company's disclosure of the company's plan to absorb and merge Haitong Securities Co., Ltd. through share exchange and raise matching funds, it is confirmed that there is no other material information that should be disclosed but has not been disclosed. The entry into force and completion of the transaction are subject to further deliberation and approval by the boards of directors of both parties